Rhode Island S3073 limits mortgage prepayment penalties to owner-occupied properties with one to four dwelling units.

Rhode Island S3073 amends the state's mortgage laws to restrict prepayment penalties to mortgages on owner-occupied properties with one to four dwelling units. The bill mandates that lenders must disclose prepayment penalty terms, conditions, and amounts clearly to borrowers. Borrowers must agree to these terms. The bill also prohibits prepayment penalties for loans made more than 60 months prior. Lenders must offer a mortgage product without these penalties. The law takes effect immediately upon passage.

Rhode Island S3073 limits mortgage prepayment penalties to owner-occupied properties with one to four dwelling units.

Rhode Island S3073 amends the state's mortgage laws to restrict prepayment penalties to mortgages on owner-occupied properties with one to four dwelling units. The bill mandates that lenders must disclose prepayment penalty terms, conditions, and amounts clearly to borrowers. Borrowers must agree to these terms. The bill also prohibits prepayment penalties for loans made more than 60 months prior. Lenders must offer a mortgage product without these penalties. The law takes effect immediately upon passage.